subject: Check 21 Technology Improves Echecks [print this page] Author: Tina Brandon Author: Tina Brandon
Adding Check21 echecks as a payment option expands market reach to millions of consumers who don't have credit cards or do not want to use them online. Check 21 echecks are the fastest growing alternative payment option offered by internet retailers. Check 21 echecks are used by businesses to accept checks online or take checks by phone. For internet echecks, customers enter echecks information, including routing and account numbers at checkout. For checks by phone, customer echecks data is entered into a virtual terminal for processing. Check 21 echecks are increasing being used to replace ACH payments echecks. New technology offered by echecks is superior to that of ACH payments. Check 21 uses bank-to-bank image transfer to clear echecks rather than the slower, more restrictive ACH payments network. Check 21 echecks are processed through the Federal Reserve either the same day or next business day, depending upon the time the echecks transactions are submitted. As a result, echecks clear faster and merchants get their money quicker. The ACH payments network has become increasing restrictive for merchants. Rules and regulations governing chargebacks and returns make it almost impossible for merchants to realize the potential echecks provide to increase revenues. Check 21 give merchants an alternative way to maximize echecks profits while minimizing risk. Check 21 eChecks Compared to ACH Payments Check 21 echecks are governed by check laws and Uniform Commercial Code (UCC state law). Check 21 echecks regulations are much more favorable to merchants than the rules laws that govern ACH payments As a result, Check 21 echecks produce fewer charge backs and simplified regulation equals easier compliance and reduced costs. Echecks processed with Check 21 technology gives merchants access to more US consumers than ACH payments. Check 21 echecks can be used to debit almost all US checking and savings accounts - even business accounts and accounts where ACH payments do not work. Check 21 echecks can be used at credit unions, S&Ls, small banks, brokerage accounts, business accounts and credit card check accounts. In fact, Check 21 technology provides merchants with access to more customers than any other single payment method.Echecks processed with Check 21 transactions appear on the consumer's online statement as a physical check. The payee field for Check 21 echecks allows the merchant up to 40 characters to describe or name their product or service. ACH payments provide only a line item on the consumer's bank statement consisting of 16 characters to describe the transaction and 10 characters for a customer service number. This can create consumer confusion, more customer service inquires and higher charge backs.About the Author:
Tina Brandon is an expert in ACH Payment Processing solutions designed to increase revenues while mitigating risk. For over 15 years, high volume merchants have relied on her expertise to successfully establish and diversify payment processing accounts with banks and payment processors throughout the world. Please visit http://www.nationalach.com for more information and details.
